Six months ago, Gov. Bill Haslam drew universal praise when he declared he wanted to make Tennessee the fastest-improving state in the nation in teacher pay by the time he left office.

His longstanding goal of increasing the number of college graduates in Tennessee to 55 percent of the population by 2025 has received similar acclaim.

But the governor’s big education initiatives are being challenged by something that was always the caveat on getting them done: tax revenue — more accurately, not enough of it.

With revenue coming in below projections, Haslam unveiled a 2014-15 budget amendment on Monday that would put off 2 percent salary raises for teachers for at least a year while stripping away a $12.9 million increase for higher education.

That news comes as the state’s four largest public school districts have each passed resolutions this winter asking the governor to “fully fund” education to recommended levels, citing several calculations that rank Tennessee poorly in per-pupil K-12 education spending.

It has all given fuel to Haslam’s critics and Democrats.

“The governor’s cuts to teacher salaries and higher education continue the state’s race to the bottom in education funding,” Tennessee Education Association President Gera Summerford said in a stinging statement.

Haslam has said the state has collected $33 million less in sales tax than projected, but hasn’t pinpointed an exact source of the shortfall. Business projections missed forecasts by $215 million. He noted his administration would still be increasing K-12 education funding by $62 million.

His long-term goals on teacher pay and college diplomas can still happen. “My priorities haven’t changed at all,” Haslam said.

But the question moving forward: How will Tennessee pay for what are year-to-year financial commitments? Days before his budget backpedaling, Haslam was asked if there was ever a time he would consider a tax increase.

“I certainly don’t see anything like that on the horizon,” he said.

Even if higher education were fully funded to the tune of a $29.3 million increase, the Tennessee Higher Education Commission recommended tuition hikes between 2 and 4 percent across the state’s public universities. Haslam’s earlier budget, short of that figure, triggered talks of as high as 8 percent hikes at universities and community colleges that fall under the Tennessee Board of Regents.

Now that no increase appears likely? TBR chancellor John Morgan said the news puts “additional pressure” on tuition talks.

Higher education institutions are in their fourth year of a outcomes-based funding formula that is meant to reward colleges based on performance. Now they say that is being compromised — along with the governor’s “Tennessee Promise” proposal to offer free tuition to attend community colleges.

“Improving Tennessee’s economic development requires a greater commitment and an ongoing investment in higher education, not a further erosion of funds,” Morgan said. “It will be challenging at best to fulfill the significant potential of the Tennessee Promise if the state can’t fund its share of the operating cost for high quality academic programs.”